The UK’s eighth Contracts for Difference offshore wind auction is now open, with a field of developers bidding for government-backed revenue contracts against a backdrop of rising costs, tighter supply chains and a pipeline that has grown more complex since the earlier, lower-hanging-fruit rounds were completed.
AR8 opened in July 2026 following the success of AR7, which awarded 8.4GW of offshore wind capacity in January 2026 at strike prices of around £95 per megawatt hour in 2026 money. That round was broadly seen as a reset from the failed AR6, which attracted no offshore wind bids after the administrative strike price was set too low. AR8 is expected to be competitive and well-subscribed, though industry analysts caution that the era of straightforward projects is behind the UK market.
Among those competing, SSE is considered well-positioned. Its Berwick Bank project off the Scottish coast won development consent from the Scottish Government after missing out on the previous two allocation rounds, giving SSE a strong and mature project ready to compete at scale. The company’s chief executive Martin Pibworth described the AR7 result for its other projects as a milestone enabling the business to advance toward final investment decisions.
RWE is also regarded as having a strong hand in AR8. The German utility secured 2.76GW across its two Norfolk Vanguard projects in AR7 and is understood to be bringing further capacity to the AR8 round from its broader UK pipeline. RWE has been one of the most consistent performers in UK CfD auctions and has a manufacturing and supply chain base that provides cost certainty others lack.
TotalEnergies faces a more difficult path. The French major, which has been reviewing its offshore wind commitments globally, has two major UK projects in the AR8 round but both are understood to face challenges around cost, planning timelines and the company’s broader strategic recalibration. TotalEnergies has already scrapped its offshore wind development in Japan, exited several German offshore leases and seen its proposed $1 billion US offshore wind lease buyout challenged in court by a coalition of US states. Its UK projects are competing against better-capitalised and more operationally focused rivals.
The broader context for AR8 is more challenging than previous rounds. Rising interest rates have pushed financing costs higher across the board. The most competitive and straightforward sites have been developed. What remains in the pipeline tends to be more exposed to grid connection delays, planning complexity and supply chain cost inflation. The Crown Estate’s UK offshore wind pipeline stands at 93GW, but converting that pipeline into contracted capacity at acceptable prices is a harder task than it was in 2022 or 2023.
Analysts expect awarded prices in AR8 to rise slightly from AR7 levels, reflecting the genuine cost pressures across the market. The results are expected to be announced in the fourth quarter of 2026.
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